This English translation of “Notes on Financial Statements” of the Institute ofActuaries of Japan is an unofficial translation. Only its original Japanese texts haveeffect, and the translation is to be used solely as reference material to aid in theunderstanding of the original one.
この「財務諸表に対する注記」の翻訳は公定訳ではありません。効力を有するのは日本語の資料であり、翻訳はあくまでその理解を助けるための参考資料です。

Notes on Financial Statements
1. Important accounting policies(1)Standards and methods of valuation of securities
The mark-to-market method based on the fair market value is applied to valuation of securities as ofthe last day of the fiscal year.
(2) Standards and methods of valuation of inventories
First In First Out, cost method is applied.
Only inventories acquired during and after FY2006 are booked.
(3) Methods of depreciation of fixed assets
The straight-line method is applied to depreciation of tangible fixed asset.
(4) Standards of booking of reserves• Reserve for bonuses
The anticipated amount of bonuses payable attributable to the current fiscal year is booked.
• Reserve for retirement benefits
The amount equivalent to benefits payable as of the end of the fiscal year is booked.
(5) Accounting methods for lease transactions
・Finance lease transactions (Less than 3 million yen)Accounting method applied to normal lease transactions is used for finance lease transactions
excluding those in which the ownership of the leased item is deemed to transfer to the lessee.
・Finance lease transactions (More than 3 million yen)Accounting method applied to sales and purchase is used for finance lease transactions
excluding those in which the ownership of the leased item is deemed to transfer to the lessee.
(6) Accounting for consumption tax and other taxes
Consumption tax and other taxes are booked by the tax included method.

2. Statement of changes in basic fund and specified assets
Statement of changes in specified assets is as shown below.

Item(Unit: Yen)
Closing balanceat the end of thecurrent year

Closing balance
Increase during Decrease during
at the end of thethe current year the current year
previous year

Specified assets
International conference expense fund

81,086,143

0081,086,143

Research and investigation operation fund70,000,000

0070,000,000

Examination and education operation fund70,000,000

0070,000,000

ICA2026 expense fund

20,000,000

0020,000,000

Reserve for retirement benefits fund

10,423,920

1,442,600

011,866,520

Total

251,510,063

1,442,600

0252,952,663

3. Breakdown of sources of basic fund and specified assets
Breakdown of sources of specified assets is as shown below.

Item(Unit: Yen)
(Of the balance, amount (Of the balance, amount
Closing balance at the end
applied from general net
corresponding toof the current yearassets)
liabilities)

Specified assets
International conference expense fund

81,086,143 (81,086,143) (Research and investigation operation fund70,000,000 (70,000,000) (0)Examination and education operation fund70,000,000 (70,000,000) (0)ICA2026 expense fund

20,000,000 (20,000,000) (0)Reserve for retirement benefits fund

11,866,520 (0) (11,866,520)

Total

252,952,663 (241,086,143) (11,866,520)

0)4. Acquisition price, accumulated depreciation and closing balance of fixed assets
The acquisition price, accumulated depreciation and closing balance of fixed assets are as shown below.
(Unit: Yen)
Item

Acquisition price

Accumulated depreciation

Closing balance at theend of the current year

Building and accessories

12,721,972

11,007,555

1,714,417

Fixtures and equipment

1,631,200

1,561,199

70,001

Machinery and equipment

495,720

37,179458,541

14,848,892

12,605,933

2,242,959

Total